Credit card issuers and consumers have faced an 85% decline in credit line increase (CLI) eligibility since 2010 due to the ability-to-pay provisions of the CARD Act. This decline does not mean consumers are less worthy of credit increases, but instead is due to card issuers lacking the ability to meet the provision’s income verification requirements.
In this white paper, Equifax’s experts leverage our wealth of credit data to analyze these trends in-depth and advise card issuers on the pros and cons associated with 4 solutions for restoring the credit line increases their businesses and customers desire which are:
- Consolidation of a card issuer’s existing ability-to-pay data into an internal income hub
- Direct outreach to CLI prospects to obtain updated income information
- Third-party solutions for helping fill the verified income gap with speed and confidence
- Lobbying regulators to expand validity of consumers’ stated income beyond current thresholds